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India to hike rates again soon

Recent India data show that inflation pressures remain acute and that the economic upswing is still broadly on track. Further monetary tightening is only a matter of time. It is almost certain that the Reserve Bank (RBI) will lift its two key policy rates by 25bp in late July. We still expect that rates will move up a cumulative 150bp over the next 12 months, and that the rupee will appreciate.

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